How often can you get a loan on investment property

Question

I bought a small one bedroom/one bath condo with tenant in suburbs of Chicago.

All I have to do is collect the rent every month.

I got a regular conventional 30 year fixed loan with 25% downpayment with 6.99% rate.

Can I purchase another condo with the same loan setup right away or need to wait x amount of time?

Robin Simon · Answer

The speed on getting another conventional loan is, like some of the other commentators have said, based on your overall DTI and then eventually on conventional caps for investment properties (10 at most).  However, if you still qualify this is typically the best route.  My general advice is that when you are ready to start "scaling" your portfolio, i.e. about 5 or so properties, then switching to DSCR Loans (which don't take into account limits or DTI) makes the most sense, but that can be earlier if you cap out or don't qualify for conventional or it takes too long (can happen if you are not W-2 and full time real estate agent for example)

Theresa Harris · Answer

As long as you have the down payment and your debt to income ratio is okay (ie you have room to borrow more), you can buy another property whenever you want.  I've bought rentals a month apart.

V.G Jason · Answer

You're a real estate agent and don't know this?

It'll depend on your DTI, if you're buying in your name.

Harjeet Bhatti · Answer

@Ralph Ace  You can finance up to 10 properties under conventional loan. There is no waiting period required to finance property as long as you meet the DTI requirement.

Ralph Ace · Answer

Im new real estate agent.

Kerry Baird · Answer

It was the reserve requirements that got me, rather than DTI.  I went to DSCR and haven't looked back.

Carlos Ptriawan · Answer

No, there is bank that can use convo loan based on 90% of appraisal rent expectations, so if it cash flow positive DTI doesn’t matter much really because all rental income could pay PITI.

of course their rate is higher but much lower than DsCr lender

Carlos Ptriawan · Answer

DTI actually also doesn't matter even with convo as long in practicality the appraisal DSCR is greater than 1.3 , there's convo lender that could accept buy 10 even at the same time while your DTI is static, of course, reserve requirement is there. It's possible when the lender is using the property's mortgage for their own cash-flow.

Devin Peterson · Answer

Hey Ralph,

Sounds like you need to start utilizing DSCR loans if you are looking to monetize your investment portfolio. Please PM directly if you would like learn more

How often can you get a loan on investment property

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